10-Second Summary
Review your Life Insurance whenever your life changes. Events such as getting married, having children, buying a home, changing jobs or improving your health can all affect whether your cover is still suitable or whether you could benefit from better cover or lower premiums.
Buying life insurance is one of those jobs nobody enjoys.
You answer lots of medical questions, sign the paperwork, put the policy in a drawer and hope you never have to think about it again.
That’s understandable, but it can also be expensive.
Life changes. Your mortgage gets smaller, your salary increases, children arrive, you stop smoking, insurers improve their products and sometimes your health improves too. A policy that was perfect five or ten years ago may no longer be the best fit today.
There are really only two questions you need to ask.
That’s exactly what we look at when reviewing an existing policy.
Sometimes we recommend leaving everything exactly as it is. Other times we find better cover, more suitable benefits or even lower premiums. The important thing is making the decision based on today’s circumstances rather than the ones you had years ago.
Probably.
Life insurance has changed enormously over the last decade.
Years ago, most policies did one thing: if you died during the term, your family received a lump sum.
Today’s policies often include a range of additional support services that can be genuinely valuable while you’re still alive.
Depending on the insurer, these may include:
The exact benefits vary between insurers and they change over time, which is another good reason to review your cover every few years.
Just as importantly, insurers regularly adjust their pricing and underwriting.
If you’ve stopped smoking, lost weight, brought your blood pressure or cholesterol under control, or simply put more time between yourself and a previous medical condition, another insurer may now look at your application more favourably.
That doesn’t always mean switching policies, but it’s certainly worth checking.
Even if your current policy is excellent, your circumstances almost certainly won’t stay the same throughout your life.
Whenever one of the following life events happens, it’s worth taking your policy out of the drawer and asking whether it still does the job you originally bought it to do.
Congratulations!
Becoming a parent is probably the single biggest reason to review your life insurance.
Your mortgage may already be protected, but your child depends on far more than having somewhere to live. If your income disappeared tomorrow, would there be enough money for childcare, food, education and everyday living costs?
Mortgage Protection clears the mortgage.
Life Insurance protects your family’s lifestyle.
If you’ve recently become parents, it’s worth checking that both of those needs are covered.
Congratulations!
Marriage or buying a home together usually means your finances become intertwined. Even if you don’t have children yet, one of you may struggle financially if the other dies unexpectedly.
If you’re both financially independent with no mortgage or dependants, you may not need life insurance just yet. However, if you’re planning to start a family in the coming years, it’s worth reviewing your options now.
Some life insurance policies include valuable additional benefits that are only available if the policy is already in place before pregnancy. Planning ahead can leave you with more options later.
If you’re unsure whether you need Life Insurance, Mortgage Protection or both, we’d be happy to talk you through the differences.
Buying a home is one of the most common reasons people arrange life insurance for the first time.
Most mortgage lenders require Mortgage Protection before they’ll release your mortgage funds, although a waiver may be available in certain circumstances.
Mortgage Protection clears the outstanding mortgage if you die during the term of the policy.
That’s important, but remember who it’s designed to protect.
Its primary job is to repay the mortgage. It doesn’t replace your income or provide additional money to help your family with everyday living expenses.
If someone relies on your income, it’s worth reviewing whether Mortgage Protection on its own is enough or whether additional Life Insurance would better protect your family.
Life insurance is often arranged early in your career and then forgotten about.
Ten years later, your circumstances can look completely different.
Your salary may have doubled, you’ve taken on greater financial commitments and your family has become increasingly dependent on your income.
A policy that was appropriate when you were earning €35,000 may no longer provide enough protection if you’re now earning €70,000 or €100,000.
Reviewing your cover after a promotion or career change helps ensure the lump sum your family would receive still reflects the income they’d be losing.
Separation, divorce or the death of a partner should always trigger a review of your protection policies.
You may no longer need the same amount of cover, or you may need more.
If you’re now raising children on your own, your income has become even more important. Life Insurance protects your family if you die, while Income Protection safeguards your income if illness or injury prevents you from working.
On the other hand, if your financial responsibilities have reduced significantly, you may be paying for cover you no longer need.
A quick review can help make sure your policies still match your circumstances.
This is one many people overlook.
If you paid extra because of your health when you first arranged your policy, your premium isn’t necessarily set in stone forever.
Many improvements can make a difference, including:
Another insurer may now look at your application more favourably, potentially offering a lower medical loading or even standard rates.
Equally, if you’ve developed a new medical condition since taking out your policy, don’t panic.
Your existing insurer can’t increase your premium or reduce your cover because your health has changed after your policy started. That’s one of the biggest advantages of arranging life insurance while you’re young and healthy.
However, before replacing any existing policy, it’s essential to make sure the new one has been fully accepted and is in force. Cancelling first could leave you uninsured or paying significantly more than before.
As a rule of thumb, we recommend reviewing your protection whenever something significant changes in your life, or at least every three to five years.
Even if you decide to keep your existing policy exactly as it is, you’ll have the peace of mind of knowing it’s still the right cover for you and your family.
A proper review is about much more than comparing prices.
At Lion.ie, we’ll look at your existing policies, your family circumstances and your current health before making any recommendations.
We’ll ask questions such as:
Sometimes the answer is simple: keep your existing policy exactly as it is.
Other times, a review can uncover opportunities to improve your cover, reduce your premiums or both.
Most importantly, we’ll only ever recommend replacing an existing policy if it genuinely leaves you better off.
Major life events are the perfect time to dust off your Life Insurance, Mortgage Protection and Income Protection policies.
You may discover everything is still exactly as it should be, which is great news.
Or you may find that your family could be better protected, your premiums could be lower or another insurer is now a better fit for your circumstances.
Either way, you’ll know you’re making an informed decision rather than simply hoping an old policy is still doing its job.
We’ll happily review your existing cover, explain your options in plain English and let you know if we think you should leave everything exactly as it is.
Complete our quick questionnaire, call us on 057 93 20836, or book a callback and we’ll do the hard work for you.
Written by Nick McGowan, QFA RPA APA
Nick is a qualified financial advisor and founder of Lion.ie, a multi-agency Irish life insurance and income protection brokerage based in Tullamore. He’s been helping people secure fair, transparent cover for over 15 years and was named Protection Broker of the Year 2022.
If you’d like straight answers without the sales pitch, learn more about Nick here.
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As Ireland's leading life insurance broker, we specialise in comparing the rates and policies from the top five Irish life insurance providers and offering the very best value quotes to suit the individual needs of our clients. Our expertise lies in finding a suitable insurance plan for those with specific needs, be it a particular illness, occupation or claim history, we've got you covered in every sense!
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